Avid Bioservices Inc (CDMO)

[swg_tdr]

CP, dead wrong, IPO with investment banker plus the Exosome story --- IF WE HAVE THE GOODS --and with qualified managers, no way can the IPO and subsequent price be controlled. But if we keep this under wraps, under current management, are you kidding this would reflect on PPHM share price now? Or even in a year?

Institutions will buy at the offer or higher, and you cannot short a $100 or $1000 stock into oblivion.

best,
N

I propose that for this disruptive technology in the overall cancer treatment cycle, we need to put a top notch management team in charge, teamed with a brand-name-recognized distribution partner. 

Hence, Ronin should formulate a spin-off for the kit manufacturing and marketing operation, placed off-shore for cost and tax advantagse (the parent can always "loan those excess profits") and get a fair and instant valuation with an IPO. 

Such IPO does then reflect on the PPHM share price by reference, not to mention the (for Peregrine) enormous publicity in a new a stock offer, and thus potentially accelerating the Exosome markets and even the step-child Bavi partnering. 

Further, the Exosome Corporate structure should be set 
 60% Peregrine (input the IP, patents and initial process knowhow), with 9% distributed to PPHM shareholders by formula, retaining 51% stock control,

(as to) 15% Ronin, holding and appointing a majority in the Ex Corp board, and selecting the Ex Corp management, for the three year start-up period, and buying into the IPO,
 
a 15% public offering 

10% reserved for buy-in by the distribution partner, based on marketing performance milestones. 

PPHM shares at 300 million outstanding == (so) 300,000 Ex Corp shares to be distributed (9% of total) 

hence total common is 3.33 million Ex Corp shares (rounded, assumed for this breakdown only) 

third year earnings, at $357million*, or eps of $107, early trendsetter market only, and excluding start-up expenses for the evolving Exosome markets, our Ex Corp share price then $1000 minimum, which means an IPO at astronomical, eh? -- here is high growth potential, way beyond the "initial trendsetter market fragment" that the $357million minimum is factored from 2. EXOSOME analysis, prior post. AND WE HAVE A REAL NEW MANAGEMENT AND MARKETING TEAM. Hence IPO is feasible 

*
refer to my prior note on price levels and earnings (royalty and IP charge) contribution